Thryv Holdings Inc (THRY)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -259,295 | -259,295 | 54,348 | 101,577 | 149,221 |
| Total stockholders’ equity | US$ in thousands | 152,700 | 152,700 | 382,267 | 314,715 | 196,775 |
| ROE | -169.81% | -169.81% | 14.22% | 32.28% | 75.83% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-259,295K ÷ $152,700K
= -169.81%
Thryv Holdings Inc's return on equity (ROE) has shown fluctuating trends over the past five years. In 2020, the ROE stood at a healthy 75.83%, reflecting a strong performance in generating net income relative to shareholders' equity. However, there was a significant decline in ROE in the subsequent years, with negative returns recorded in both 2021 and 2022, at -169.81%. This indicates that the company incurred net losses exceeding the equity invested by shareholders during those periods.
The negative ROE in 2021 and 2022 raises concerns about the company's profitability and efficiency in utilizing shareholders' funds to generate earnings. It suggests potential operational challenges or financial difficulties during those years. The return to positive ROE in 2023 at 14.22% may indicate some improvements in the company's financial performance, but the ratio remains relatively low compared to the peak in 2020.
The continued negative trend in ROE in 2024 at -169.81% raises further red flags regarding Thryv Holdings Inc's financial health and ability to generate returns for its shareholders. The inconsistent performance in ROE over the years highlights the need for a comprehensive assessment of the company's operational efficiency, profitability, and financial management practices to address the declining trend and restore profitability and shareholder value.